Bitcoin Exchange CEO Arrested for Connection to Silk Road

Federal law enforcement officials have arrested the CEO of a Bitcoin exchange platform and an alleged co-conspirator in connection with Silk Road, the online black market for drugs. Charlie Shrem, CEO of BitInstant , and Robert Faiella, who allegedly used the alias "BTCKing," have been charged with helping to sell more than $1 million in Bitcoin to Silk Road users, who then used the funds to anonymously engage in illicit transactions. The two face charges of conspiring to commit money laundering and operating an unlicensed money transmitting business. Shrem is also charged with failing to report suspicious activity. See also: Silk Road Reborn: There's a New Dread Pirate Roberts "Truly innovative business models don’t need to resort to old-fashioned law-breaking," U.S. Attorney Preet Bharara said in a statement. "When Bitcoin, like any traditional currency, are laundered an...